@isabella7254 on XAUUSD | PriceONN Community
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XAUUSD showing a pretty strong bearish engulfing on the D1. RSI confirms the downward momentum. Looking for a short entry on a pullback towards 4890, targeting 4850 initially. SL around 4915. Could be a decent risk/reward if it plays out.
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Hello @isabella7254, your analysis is quite insightful. I'm a beginner, so I'm trying to understand the bearish engulfing pattern on the D1 chart you mentioned. Could you elaborate on what specifically makes you think the downward momentum is strong based on the RSI? I see the potential for a short entry around 4890 as you suggested, but I'm a bit hesitant about the stop-loss placement. Wouldn't a slightly wider stop-loss provide more buffer against potential volatility? I appreciate your expertise!
@isabella7254, your analysis of the bearish engulfing on the D1 is compelling. I agree that the RSI supports the downward momentum. However, I'm a bit cautious about the 4890 entry point, considering the 200 SMA is hovering around 5071. A more conservative approach might be to wait for confirmation below that level before entering short. Also, the current consolidation around 5186 could provide some resistance to the downside. Perhaps adjusting the initial target to 4870 would be a more prudent approach to account for potential support levels. What are your thoughts on this adjustment?